Chinese social networking company Momo Inc on Friday announced acquisition of Tinder-like mobile dating app Tantan, as it seeks to cover a larger group of users and create new momentum in key markets.

Under the deal, Momo agreed to acquire a 100 percent stake in Tantan for a combination of share consideration and cash, including approximately 5.3 million newly issued Class A ordinary shares of the company and $600.9 million in cash.

The deal is expected to close in the second quarter of 2018.

Tang Yan, chairman and CEO of Momo, said the company would continue to focus on the social networking sector, and the acquisition would enrich the firm's product line in the social space.

"We will continue to invest and incubate more sub-brands to serve the social and entertainment needs of different demographics," Tang said. "Tantan has become widely recognized within a short period of three years since its inception, which is largely attributable to the outstanding performance of its talented team. We also respect Tantan's product strategy that focuses on the customer experience of female users."

According to Tang, after the acquisition, the Tantan team will continue to operate the mobile apps under the Tantan brand with Momo's full support.

Wang Yu, chairman and CEO of Tantan, said as the two sides had strengths in their respective markets and among targeted customers, the deal would mark a strategic move to help cover a wider range of user demographics and needs.

"The acquisition will build up a larger social networking market through complementary businesses and strategic synergy. We are very confident in our future development."

Founded in 2011, Beijing-based Momo is a key player in the social networking sector in China, enabling millions of users to communicate with each other and expand relationships from online to offline.